Structuring Attorneys Fees – The Fine Print

Attorney Fee Structures
Most plaintiff attorneys are aware that their fees can be structured in personal injury cases. Less known is that structured fees, using a life insurance annuity, can also be created in non-injury (non-qualifying) cases.

Advantages of Structuring Fees
While structured attorney fees do not enjoy the same generous tax benefits as those of structured settlements in personal injury cases, there are still attractive advantages. If properly executed and documented, the income is not taxable until received. Instead of accepting a lump sum fee upon settlement and the elevated tax consequences, deferring income over a number of years or to later years with a structured fee schedule can reduce the tax obligation.

Other advantages include the ability to fund pension plans, stabilize firm revenues and create tax-deferred reserves for case opportunities. For sole practitioners and members of small firms, a steady, reliable income stream from a structured fee schedule allows for planning such life events as education expenses and retirement.

The Fine Print
Fees that are billed and paid hourly cannot be structured. Timing is important. The decision to structure a fee must be done early in the settlement negotiations. Once attorneys sign an agreeable settlement for their clients (qualified or non-qualified), the fee is considered earned and fully taxable.

With more than 30 years experience, Pat has placed over $1.5 billion in annuity premiums and U.S. Government notes. His structured settlement expertise and dedication to helping create the best structured settlements for injured parties is acknowledged and valued by attorneys around the country. He specializes in settling physical and non-physical injury cases and attorney fees–all at no cost to his clients. E-mail Pat personally at pat@patrickfarber.com or call 800-734-3910.

Patrick C. Farber

Pat Farber has 35 years of insurance experience with more than 30 years in the structured settlement field. Pat specializes in providing structured annuities for medical malpractice, personal injury, product liability, workers’ compensation, toxic torts, and construction defect cases as well as for non-physical injury cases and attorney fees. He participates in court hearings, arbitrations and settlement conferences throughout California, the West Coast and in other areas of the United States. He has personally placed over $3 billion in annuity premiums and U.S. Government notes.